COVER TOPIC RETAIL RI$ING

The Top 50 U.S. Optical Retailers Hit Record Sales Over $12B MARGE AXELRAD / SENIOR VP, EDITORIAL DIRECTOR U.S. Vision Care Market Mass (in millions) Merchants’ NEW YORK—The Top 50 U.S. Optical Retail- Top 50 Share Top 10 Share Share ers achieved record collective sales of over $12 $12,151.6* $10,489.2* $3,241.9* billion for calendar year 2015, according to Vision Monday’s estimates. The dollars reflect a 35.3% 30.5% respectable sales performance for most of the 9.4% year, and include revenues from the retail sales of products, eyecare services and, when applicable, a small percentage of online sales. But most of the movement in the Top 50 rank- ings for the period, particularly among the Top Total 2015 Market: $34,446.0** 10 and Top 25, was, propelled by the effect of a * VM Estimate ** Vision care products and services sold at optical retail locations. Source: VisionWatch Data is from 12ME Dec. 2015 Continued on page 54

Consolidation Marks Sales Among VM’s Top 10 Top 50 Retailers’ Sales (in millions)

NEW YORK—The collective estimated sales of the Top 10, as a proportion of the Top Mass Top 10 Share 50 U.S. Optical Retailers, is pronounced, as it’s been for the past several years. Based on Merchants’ $10,489.2* 26.7% Share 86.3% calendar year 2015 estimates, the Top 10’s share of the Top 50 amounted to 86.3 percent $3,241.9* of the Top 50’s total. This was on par with the 86.1 percent share of last year’s Top 10. The mass merchants/wholesale clubs amounted to a collective, estimated 26.7 percent of the Top 50’s total estimated sales for the 12 ME December 2015. The Top 10’s collec- Total Top 50 Sales: $12,151.6* tive retail dollar share of the total U.S. vision care market amounted to 30.5 percent of the * VM Estimate Source: VisionWatch Data is from 12ME Dec. 2015 total, or about $10.5 billion of the total market’s $34.4 billion in revenues. n 44 Key Optical Players Ranked by U.S. Sales in 2015

2015 2014 Retailer 2015 Sales1 2014 Sales1 2015 2014 Comments Rank Rank ($ Millions) ($ Millions) Units4 Units4 1 1 Luxottica Retail $2,530.0* $2,318.5* 2,311 2,291 U.S. sales estimate includes revenues from company-owned and franchised stores as well as Glasses.com. Retail brands: LensCrafters (852 units), Pearle Vision (63 company-owned and 410 franchised units), Sears Optical (556 units), (390 units), Ilori/ Optical Shops of Aspen (28 units), Oliver Peoples (10 units), Alain Mikli (2 units). All U.S. and P.R. locations. 2 2 L.P. $2,511.5 $2,212.9 3,262 3,023 In accordance with franchise law, Vision Source is a franchisor, and its members are franchisees who own their respective practice. Vision Source was acquired by Essilor of America, a division of Essilor International, in fall 2015. 3 3 Wal-Mart Stores $1,714.0* $1,521.0* 3,582* 3,310* Retail brands: Walmart Vision Center (3,000* company-owned units), Sam’s Club Optical (582* units). 4 4 National Vision, Inc. $945.0* $890.0* 860* 792 Retail brands: America’s Best Contacts & Eyeglasses (462*units), The Vision Center (Walmart 228* units), Eyeglass World (93*units), Vista Optical (Fred Meyer 29* units), National Vision (military 48* units). Revenue figures include e-commerce. 5 6 Costco Wholesale $915.2 $833.0 475 457 Retail brand: Costco Optical Retail brand: 6 5 Visionworks of America, Inc. $908.4 $880.1 699 652 7 10 MyEyeDr./Capital Vision $305.0 $165.0 205 139 Retail brands: MyEyeDr. acquired many independent locations and acquired 27 Eye Care Associates locations in North Carolina, Dec. 2014, Services, LLC Eye Express, The Hour Glass in 2015 8 7 Refac Optical Group $275.2 $274.8 780 736 U.S. Vision store count by retail brand: JCPenney Optical (346 units), BJ’s Optical (201 units), Nationwide Vision Centers (69 units), The Opti- cal Shop at Meijer (78 units), Boscov’s Optical (39 units), Sears Optical (19 units), AAFES (27 leased depts/military), 20/20 Vision Center (1 company-owned store).

9 8 , Ltd. $233.0 $228.0 171 168 “Retail brands: Dr. Barnes’ Eyemart Express (154 units), Dr. Barnes’ Vision 4 Less (14 units), Dr. Barnes’ Eyewear Express (2 units), Dr. Barnes’ VisionMart Express (1 unit).

10 11 Cohen’s Fashion Optical $152.0 $150.0 126 128 All stores are franchised. 11 18 Eyecare Partners (used to $139.3 $65.5* 129 63 A new entity composed of Clarkson Eyecare (64 units), Thoma & Sutton be Clarkson) Eyecare (24 units), EyeCare Associates (19 units), acquired 2015 and eyecarecenter, p.a. (21 units), acquired 2015.

12 12 Texas State Optical $111.0* $105.0* 122 125 All locations are independent nework affiliates. 13 N $110.0*3 N 203 N VM Estimates include total revenue from online sales including 20 retail/ showroom locations open at end of Calendar Year 2015.

14 14 Emerging Vision, Inc. $107.3 $93.5 120 126 Sales include revenue from company-owned and franchised stores. Retail brands: Site for Sore Eyes (40 franchised units), Sterling Optical (7 company-owned and 63 franchised units), The Eye Gallery (9 company- owned units), Singer Specs (1 franchised unit), Kindy Optical (1 franchised unit), and The Artful Eye (1 company-owned unit). 15 9 For Eyes/Insight Optical Mfg. $105.0* $175.0* 116 144* Retail brand: For Eyes Optical. Acquired by GrandVision NV in Dec. 2015 16 13 Shopko Stores Operating $94.0* $94.0* 140 140 Retail brands: Shopko Eyecare Center (129 units), Shopko Hometown Eyecare Center (9 units), Shopko Express Eyecare Center (2 units). Co., LLC 17 16 Henry Ford OptimEyes $89.0 $68.0 19 19 Retail brands: Henry Ford Optimeyes 18 17 Luxury Optical Holdings $79.7 $67.3 61 59 Retail brands: Optica (24 units), Morgenthal Frederics (12 units), Robert Marc (8 units), Scene (5 units), Davante (4 units), Leonard Opticians (3 units), Aucourant (1 units), Optic Masters (1 unit), Opticians3 (1 unit), Specs Optical (1 unit), Riehle Optical (1 unit). 19 20 Vision Precision Holdings $74.9 $63.8 45 43 Retail brands: Stanton Optical (35 units), MyEyeLab (10 units). LLC (formerly Macarius & Daniel)

Source: VM’s 2016 Top 50 U.S. Optical Retailers. When 2015 sales are the same for more than one company, the retailer with fewer 2015 U.S. stores is ranked first. *VM ESTIMATE includes company sources and documents, reports and industry sources. *=VM estimate. R=Revised N=Not on last year’s list. 45 Key Optical Players Ranked by U.S. Sales in 2015 COVER TOPIC

2015 2014 Retailer 2015 Sales1 2014 Sales1 2015 2014 Comments Rank Rank ($ Millions) ($ Millions) Units Units 20 19 SVS Vision $70.0 $65.4 68 63 21 21 Ossip $52.0* $48.0* 45* 47* Ossip Optometry and Ophthalmology. Retail brand: Crown Vision Center. 22 23 NuCrown, Inc. $43.0 $40.8 28 28 23 28 Eye Doctor’s Optical Outlets $40.7 $31.8 44 44 Retail brand: Optical Outlets. 24 27 Partners In Vision, Inc. $40.2 $34.0 104 92 Operates leased optical departments in MD practices. 25 24 Allegany Optical $36.5 $34.5 27 27 Retail brands: Allegany Optical (18 units), National Optometry (9 units). All locations are independent network affiliates. 26 25 Today’s Vision Licensing Corp. $36.0 $34.4 46 44 27 30 Wisconsin Vision, Inc./ $35.5 $30.0 38 37 Retail brands: Wisconsin Vision/Heartland Vision (30 units), Eye Boutique (8 units). Heartland Vision 28 29 SEE, Inc. $34.7 $31.2 37 36 Retail brand: OptiCare Eye Health & Vision Centers. Acquired in 29 26 OptiCare Eye Health Centers, Inc. $34.0 $34.0 18 18 Feb. 2016 by MyEyeDr. 30 31 Rx Optical Laboratories, Inc. $30.1* $29.3* 51 51 Sales revenue from 51 company-owned units. 31 33 HW Holdings, LLC $28.4 $25.5 21 22 Retail brand: All About Eyes. 32 32 Schaeffer Eye Centers $28.1* $27.5* 17 17R 33 34 Houston Eye Associates $26.3 $21.7 21 19 34 38 Rosin Eyecare $19.0 $16.5 23 19 Retail brands: Rosin Eyecare (16 Rosin Eyecare, 1 Dr. Weinstein at Rosin Eyecare, 4 ‘Centers of Excellence’ with ODs, MDs and opti- cal), 2 university optical shops. Added 4 locations in 2015. 35 35 Standard Optical $18.5 $19.0 18 19 Retail brands: Standard Optical , Opticare of Utah. 36 37 Dr. Tavel Optical Group $18.5* $17.4* 19 19 Retail brands: Dr. Tavel Family Eyecare (17 units), Vision Values (2 units). 37 39 Spex $17.0* $16.2* 25 22

38 40 Eyetique $16.2* $15.0* 21 17 Retail brands: Eyetique (13 units), Three Guys Optical (6 units), Norman Childs Eyewear by Eyetique (1 unit); Chromos Eyewear (1 unit). Acquired 1 location in 2015, now operating stores in Pittsburgh as well as Stowe, Oh and Cleveland, Oh. Retail brand: Bard Optical. 39 41 J.A.K. Enterprises, Inc. $16.0 $14.0* 21 20 40 43 Horizon Eyecare $13.0* $12.5* 6 6 Based in Charlotte, N.C. 41 44 Cocolunette Holding, LLC $12.8 $12.3 12 12 Retail brand: Edward Beiner Purveyor of Fine Eyewear. 42 46 See Center/Group Health $12.0* $11.5* 14 14 Retail brand: The See Center.

43 45 Accurate Optical Co., Inc. $11.1 $11.9 14 14 Retail brands: Accurate Optical (8 units), H. Rubin Vision Centers (6 units). 44 47 Midwest Vision Centers, Inc. $10.1 $9.0 19 19 Midwest Vision Centers (18 units), Taft Optical (1 unit). 45 N Shawnee Optical $10.0* N 10 N 46 48 Eye Surgeons of Richmond, Inc. $9.2 $8.8 7 11 Retail brands: Virginia Eye Institute (7 units).

47 N Lange Eyecare $9.0* N 9 N 48 N Davinchi Equity Group $8.8 N 6 N Retail brands: Riverfront Eyecare, Bloomberg Eyecare 49 N Optyx $8.5* N 9 N

50 50 WCE, LLC $7.0 $6.5 7 8 Retails brands: Co/Op Optical.

TOTAL $12,151.6* $10,864.1* 14,048* 13,160*

1 Includes retailers’ product sales, professional services,managed vision benefit revenues and e-commerce sales when applicable. U.S. sales include Puerto Rico, not Canada. 2 The retailers and totals given for 2014 are different from what appeared on the May 2015 VM Top 50 list because the Top 50 companies differ from year to year due to industry consolidation and other factors. 3 VM Estimate* includes online sales, including 20 retail/showroom units open as of Dec. 2015. 4 Optical locations 46 COVER TOPIC

Snapshots of Optical’s 10 Largest U.S. Retail Players

sibilities, managing both of the group’s hosted LUXOTTICA RETAIL environments. Target and Sears now have two WAL-MART STORES Against the backdrop of Luxottica different leadership teams reporting to her. Alex With approximately 3,000 of its own Group’s senior level management Wilkes, formerly VP of eyecare for LensCrafters, Walmart Vision Centers and another 1 changes, which, at the beginning was promoted to SVP & GM for Pearle Vision. 3 estimated 582 Sam’s Club optical of this year saw founder Leonardo Del Vecchio as - This year’s estimates for Luxottica Retail’s U.S. locations, Wal-Mart Stores remains entrenched at sume the executive chairman role overseeing mar- sales also include estimated revenue from the number 3 on VM’s ranking again for 2015. kets, working with the CEO of products and opera - Glasses.com e-commerce business. Walmart opened some 263 new vision centers in tions, Massimo Vian, the company reported that 2015. (An additional estimated 228 Walmart Vision its overall sales in Retail North America (RONA) VISION SOURCE locations, operated by arrangement by National group were a major “growth engine” for the group Vision, Inc., generate additional sales. These are in fiscal year 2015. LensCrafters in North America After it reported a milestone in De - tallied within NVI’s results but ranked as their own strongly contributed with comparable stores sales cember 2014 by adding its 3,000th number on VM’s Leading Mass Merchants Chart on up by 4.3 percent. A major reinvestment in Lens - 2 location, Vision Source continued Page 50). Crafters via a new store design is in the works to its expansion in 2015, adding over 260 additional Independent optometrists operate private offices debut this year. In addition, in November 2015, locations throughout the year. The group has over next to Walmart Vision Centers and Sam’s Club Opti- the company announced a new agreement with 4,000 members. cal Centers to provide comprehensive eye exams, Macy’s, to bring LensCrafters to as many as 500 The group aligns independent optometrists for lens fitting and prescriptions by appointment and Macy’s department stores in the U.S. over the next the purpose of growing their practices, lowering on a walk-in basis. In addition, Walmart and Sam’s three years. The first of those locations is to open their cost of goods and sharing best practices to Club have on-site opticians in their respective Vision later this year. increase their profitability. Centers and Optical Centers to assist with fitting Also fueling growth in 2015 were the opening of Each member of Vision Source is a franchised glasses in store or in club. 44 new optical departments within Target Stores member, an independent optometrist who owns Taken collectively, combining Walmart’s own in the U.S., with the division of Retail Optical their location and manages their location, corporate vision centers, the estimated revenue from North America generating double-digit gains for leveraging the franchise as they deem neces - its Sam’s Club opticals and VM estimates for the the period. sary. Vision Source members pay a fee based on NVI leased vision departments within Walmart puts In addition to 852 Lenscrafters stores operating practice size. Walmart’s total vision care revenues at an estimated in the U.S. and P.R., Pearle Vision moved more The group’s suite of practice enhancement solu - $1,746 million for 2015. locations into a franchise model, operating 410 tions includes: local leadership/mentors, devel- franchised units and 63 company-owned Pearle opment of managed care relationships, practice locations in 2015. The company’s licensed brands management consultation, staff training and NATIONAL VISION unit also includes 556 Sears Optical locations in performance programs, as well as practice and Since being acquired by investment the U.S. On the luxury side of the business, the group marketing. firm KKR in 2014, National Vision group oversees Ilori/Optical Shops of Aspen, Oliver The group was acquired by Essilor of America, a 4 Inc. (NVI) has grown from 750 retail Peoples stores and, at the end of 2015, two Alain longtime business partner, in a move announced locations to 860 locations spread across the country. Mikli stores. in July 2015 and finalized this past fall. With estimated sales of $945 million in 2015, up In February of this year, a series of senior lead - The company launched Optical Dream in 2015, from $890 million in 2014, NVI is solidly entrenched ership changes were announced in RONA under a program designed to enhance patient experi - as the fourth largest retailer, having claimed that the direction of Retail North America president, ence and increase optical sales, via trainings, spot for the second year in a row. Nicola Brandolese. Mary Anne Stangby, formerly webinars and local member meetings. Over 2,300 NVI is one of the few retailers focused exclusively SVP & GM of Sears Optical was promoted to SVP practices registered for the program which is be - on the value segment of the industry. The company & GM of North America (SGH). Pete ing enhanced this year, along with general spatial operates vision centers across the country, including Bridgman who had been SVP & GM of Pearle Vi - analytics, helping members pinpoint where to America’s Best Contacts & Eyeglasses and Eyeglass sion was promoted to SVP & GM of LensCrafters. locate new practices. A new program to expand World freestanding concepts and vision centers He assumes the role from Eric Anderson, a long - digital and social marketing was also debuted at inside Walmart, Fred Meyer and on U.S. military time Luxottica executive, who left the company. the group’s most recent annual member meeting, bases. NVI also sells its products directly to consum- Alexis McLaughlin, SVP & GM of Target Optical The Exchange, which marked Vision Source’s 25th ers through 25 consumer-facing websites, including anniversary. added Sears Optical to her leadership respon - Continued on page 48

@VisionMonday Facebook.com/VisionMonday MAY 16, 2016 VISIONMONDAY.COM 48 COVER TOPIC

Snapshots of Optical’s 10 Largest U.S. Retail Players (cont’d)

Continued from page 46 is opposed by major manufacturers such as Johnson ACLens.com and DiscountContactLenses.com. & Johnson, Alcon and Bausch + Lomb as well as the MYEYEDR./CAPITAL VISION In June, 2015, NVI broke new ground, literally and American Optometric Association. figuratively, when it became the first major optical SERVICES retailer to add smart glasses to its product mix. At 7 Already in a major expansion mode in the opening of its new Eyeglass World store in San VISIONWORKS 2014, MyEyeDr./Capital Vision Services Diego, Calif., NVI executives unveiled a wearable 2015 was the second full year Vi- continued on a path to bring both independent technology department featuring a special area sionworks operating nationally as a eyecare practices and strong regional groups into the stocked with state-of-the-art specs from Recon, Vuzix 6 unified retail optical brand. The group fold, backed by a substantial infrastructure of support and Epson. is a division of HVHC, Inc., which also includes and service teams. In December, NVI expanded its patient financing Davis Vision, all of which are headquartered in San At the end of 2015, the group’s CEO Sue Downes agreement with CareCredit, a leading provider of Antonio, Texas. HVHC’s parent company, Highmark told VM that MyEyeDr. operated over 200 practices, patient financing, across its family of brands. The Health, is a Pittsburgh, Pa.-based enterprise that is up from 139 at the start of the year. Downes said, multi-year agreement extends the availability of the one of the largest integrated health care delivery “We remain highly selective with the practices we are CareCredit health, wellness and beauty credit card at and financing networks in the country. acquiring and ultimately decide to move forward with select NVI retail locations nationwide. Visionworks continued its geographic expan- less than 5 percent of the practices we speak to. We NVI also initiated a new program with the Boys & sion in existing as well as new markets during the look for the right combination of quality clinician(s), Girls Clubs of America in 2016, kicking off what will year. Under the direction of president and CEO, Jim strong reputation, positive financial metrics and geo- be a multi-year national partnership to provide vi- Eisen, Visionworks operated 699 retail stores in 42 graphic fit. The integration into the MyEyeDr. family is sion screenings, access to comprehensive eye exams states in 2015, adding 56 new stores last year in a key focus for us. We want the patients, doctors and and free eyeglasses for qualified members at select key metro markets such as Detroit, Michigan and staff to not feel a strain as a result of the acquisition Boys & Girls Clubs around the country through NVI’s the boroughs of New York City and realized a 5.3 and view the change in a positive light.” America’s Best Contacts & Eyeglasses retail locations. percent increase in comparable store retail sales. Among the group’s deals in 2015 were dozens of NVI will also contribute $1 million annually over the The national profile enabled more consistent and single practices and additional optometric groups, next three years to support BGCA and its preventive robust national media advertising for Visionworks. along with acquisitions of The Hour Glass in Florida, care and wellness initiatives. And, earlier this year, Visionworks became one of Doctors on Sight in Maryland and Virginia, Eye the first major optical retailers to roll out e-com- Express in Florida, Vision Associates in Maryland and merce capabilities to work along with its physical Halpern Eyecare in Delaware. COSTCO WHOLESALE stores. MyEyeDr.’s expansion into other U.S. geographic Costco Wholesale operated 475 The national retailer said it is bringing its large markets is continuing into 2016. Costco Optical vision centers in 492 assortment of eyewear and eyecare expertise to 5 locations in the U.S. and Puerto Rico consumers who can browse, try on and purchase for 2015, up from 457 in 2014. The company gener- prescription eyeglasses, fashion frames and sun- REFAC OPTICAL GROUP ated $915.2 million in revenue from its vision centers glasses and have them delivered directly to their Refac Optical Group, the eighth largest during calendar year 2015, a 9 percent increase over door. Said Eisen, “Today’s consumer is constantly retailer, experienced a slight increase calendar year 2014. on the go, so we’re proud to make our products 8 in sales in 2015, from $274.8 million Costco Optical’s optical locations nationwide even more easily accessible by providing the to $275.2 million, although its store count rose from provide frames, prescription lenses, contact lenses ability to buy online, pick up in-store or select 736 to 780. and a variety of lens options. For comprehensive eye delivery to any destination nationwide. Plus with Refac has been owned by ACON Investments, exams, most have an independent doctor of optom- over 700 locations throughout the U.S., customers a Washington, D.C.-based private equity invest- etry in or near the optical department. These ODs are can easily drop in for a professional fit—it’s excit - ment firm, since 2011. Its main operating company contracted individually. ing to offer a complete multi-channel experience consists of U.S. Vision, Inc. and Nationwide Vision, Costco Wholesale has taken a leading role in the for our customers.” which it acquired in 2013. Refac’s retail brands are battle over control of contact lens sales in the U.S. Visionworks was also ranked number 150 on JCPenney Optical, BJ’s Optical, Nationwide Vision It recently banded together with 1-800 Contacts last month’s Forbes’ “Best Employers” list, among Centers, The Optical Shop at Meijer, Boscov’s Opti- and Lens.com to form an advocacy group called the 500 companies among a range of industries and cal, Sears Optical, AAFES (in military locations) and Coalition for Contact Lens Consumer Choice, which institutions, and was also ranked number 14 on the 20/20 Vision Center. is pushing to deregulate sales of contact lenses and related “Best Employers in Texas” report. Adam Levy was named CEO and president of Refac Continued on page 52

@VisionMonday Facebook.com/VisionMonday MAY 16, 2016 VISIONMONDAY.COM 50 COVER TOPIC

Additional Value-Oriented Mass Merchant Locations Added to Growth of Optical Sales in Clubs/Chains in 2015

NEW YORK—An estimated 700 new locations of to grow to 5,045 locations in 2015, compared to Walmart Vision Centers (in stores operated directly optical departments within mass merchants as well 4,705 in the prior year. by the company), along with another estimated 228 as some wholesale clubs contributed to an increase The rankings among leading mass merchants/ departments run inside Walmart by National Vision in revenues for the country’s leading players in this clubs with optical departments mostly stayed the Inc. The Sam’s Clubs with optical departments sector for the calendar year 2015, according to VM’s same this year. The notable change is the increase numbered 582 for the period. All together, that estimates and ranking. in ranking of Target/Super Target stores with opti- brings all of Walmart’s vision operations generating The group’s estimated sales of $3,242 million in cal departments, which are part of the licensed sales of $1,714 million for the year. 2015, compared to $2,814 million in the prior year, brands division of Luxottica Retail. Target moved The share of mass merchant and wholesale represents a very strong collective retail dollar from 346 locations in 2014 to 390 locations in 2015 clubs’ optical sales is now estimated to be 9.4 increase of 15 percent. and the stores open for more than a year experi- percent of the total U.S. vision care market at The expansion of optical centers within enced strong comps. retail. This represents 26.7 percent of the VM Walmart, Sam’s Club and Target helped the total Number one Wal-Mart stores held firmly to that Top 50. n number of optical departments within mass/clubs spot, taking into account its approximate 3,000 [email protected]

Leading Mass Merchants, Clubs With Optical Departments

Rank Rank Mass Merchant 2015 Retail Sales 2015 Class 2014 Retail Sales 2014 1 1 2015 2014 (Operator) ($ in Millions) Units ($ in Millions) Units

1 1 Walmart $1,746.0* 3,228* MM $1,538.0* 2,964* Wal-Mart Stores $1,554.0* 3,000* $1,367.0* 2,737* National Vision $192.0* 228* $171.0* 227

2 2 Costco Wholesale $915.2 475 WC $833.0* 457

3 4 Target/Super Target $225.0* 390 MM $95.0* 346 Luxottica Retail

4 3 Sam’s Club $160.0* 582* WC $154.0* 573* Wal-Mart Stores

5 5 Shopko Stores $94.0* 140 MM $94.0* 140

6 6 BJ’s Wholesale $86.7 201 WC $85.3* 195 Refac Optical Group

7 7 Fred Meyer $15.0* 29* MM $15.0* 30 National Vision

Totals $3,241.9* 5,045* $2,814.3* 4,705.0*

Source: VM’s 2016 Top 50 Optical Retailers *=VM Estimate MM=Mass merchant WC=Warehouse club 1 Optical locations

For a look at prior years’ reports, go to the VM Reports MAY 16, 2016 category on VisionMonday.com. 52 COVER TOPIC

Snapshots of Optical’s 10 Largest U.S. Retail Players (cont’d)

Continued from page 48 Partners, the company plans to open nearly 200 In 2016, the group, which has inaugurated a Optical Group in September, 2015. Al Bernstein is more stores by 2020. new marketing approach over the past year, said president of Nationwide Vision. In April, 2015, FFL expanded its footprint in the it was embracing the spirit of founder Jack Cohen, optical industry with an investment in Clarkson who operated a pushcart business in the area and EYEMART EXPRESS, LTD. Eyecare, a leading independent, full-service eyec- opened this first NYC fashion retail location 85 are provider. Chris Harris, managing director of years ago. Eyemart Express, a leader in the FFL, said Eyemart Express is run separately from At its original landmark shop on the corner value segment of the market, went Clarkson. Since then, FFL has helped Clarkson of Orchard and Delancey streets on Manhattan’s 9 from seventh to ninth position in acquire two additional groups, Eyecare Associates famed Lower East Side, Cohen’s presented a this year’s Top 50 ranking. The company, now and eyecarecenter, p.a. during 2015. new retail environment and concept shop. A new owned by private equity investment firm FFL Part - in-house eyewear collection, called The Collec- ners, generated $233 million in sales in 2015, up tive, also debuted, designed to target a new and 2.1 percent from 2014. Its store count grew to 171, COHEN’S FASHION youthful eyewear customer. three more than the previous year. “The Concept Store allows us to experiment The company’s retail brands are Dr. Barnes’ OPTICAL with new products and is a vehicle to reach a Eyemart Express, Dr. Barnes’ Vision 4 Less, Dr. One of the oldest names in 10 younger audience with an on-trend $99 entry Barnes’ Eyewear Express and Dr. Barnes’ Vi - the New York City optical level collection, including our standard eye sionMart Express. retail market, Cohen’s Fashion Optical is now com - exam at Cohen’s level quality,” said Bob Cohen, In June, Eyemart Express celebrated its 25th pletely a franchise operation, with 126 locations president. n anniversary. Fueled by the investment from FFL operating in 2015 in the U.S. and Puerto Rico. 54 COVER TOPIC

The Top 50 U.S. Optical Retailers Hit Record Sales Over $12B

Continued from page 43 tained its post at #8, while MyEyeDr./Capital the U.S. optical market in 2015, with the acqui- number of private equity investments in the Vision Services jumped from 10 in last year’s sition of family-owned For Eyes Optical. optical market which created both consolida- ranking to #7 this year. MyEyeDr.’s ranking Collectively, the VM Top 50 account for 35.3 tion—absorbing formerly independent regional was fueled by its assertive expansion of both percent of the total U.S. vision care market, operations—as well as expansion among several smaller independent offices and regional which is estimated by VisionWatch to be new market leaders. groups which it brought under its banner, $34,446 million in revenues in 2015. The Top The composition of the VM’s Top 10, for the helped by the company’s own new equity 50’s dollar share equals $12,151.6 million. The 2015 period, remained the same among the top investment in August 2015 as a group led by Top 10 of those Top 50 command a major pro- four companies: Luxottica Retail at #1 (part of Altas Partners and Caisse de dépôt et place- portion of those sales. The Top 10 alone the large publicly-traded global group), Vision ment du Québec (CDPQ), two large invest- account for about 30.5 percent of the total Source at #2 (which itself was acquired by Essi- ment firms who did so in partnership with co- vision care market’s sales. Mass merchants and lor in 2015), Walmart Vision Centers (including founder and CEO Sue Downes and other wholesale clubs together account for estimated Sam’s Club) at #3 and National Vision at #4. members of management. sales of $3,242 million, or 9.4 percent of the (National Vision saw an investment by promi- Cohen’s Fashion Optical, now a franchise- total U.S. vision care market’s revenues. nent group KKR in 2014). only operation, moved up to the Top 10 this And, yes, for the first time, VM has attempt- Among the others in the Top 10 are familiar year from last year’s rank of 11. Also appearing ed to rank Warby Parker on its VM Top 50 national market leaders like Costco at #5 and for the first time in the Top 10 is Eyemart Retailers list. While Warby Parker has not dis- Visionworks at #6. Refac Optical Group main- Express, on an expansion pace for its value closed or corroborated its total sales estimates, retail formats and with the online player, which had opened a few the investment help of showroom locations in 2014, expanded more FFL Partners, a private significantly into the retail sector last year. equity firm that took an Warby Parker operated 20 stores as of Decem- interest in the chain just ber 2015. In 2016, the company has stated that at the end of 2014. it intends to open another 15 to 20 locations, Noteworthy, too, is either freestanding or within other host loca- Eyecare Partners, ranked tions or venues. at number 11 based on A few of VM’s Top Retailers are already selling 2015 yearly sales, a new eyewear products online, particularly contact entity consisting of Clark- lenses, and revenues, where applicable are son Eyecare, which had included in their total revenue report or esti- previously acquired mates. Luxottica Retail’s estimate now also Thoma & Sutton and this includes revenues from its Glasses.com site. And year added to its group Visionworks, after a year in development, with the acquisition of launched its own e-commerce presence this year. EyeCare Associations and Omni-channel, blurring the boundaries of eyecarecenter p.a. brick and mortar with click and order, is start- It should be noted ing to be felt in the optical retail category, no that global retail optical doubt, and so is reflected in VM’s signature player, GrandVision, report this year. n made its first move in [email protected]

@VisionMonday Facebook.com/VisionMonday MAY 16, 2016 VISIONMONDAY.COM